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5 = Summary =
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7 * Lockheed Martin Corporation is a global security and aerospace company.
8 * It researches, designs, developments, manufactures, and integration of advanced technology systems, products and services.
9 * Recently US Army Awards $4.79 Billion Production Contract for All-Weather GMLRS Rocket
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13 [[image:LMT0.png||height="196" width="722"]]
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16 Lockheed Martin Corporation (NYSE: LMT, LSE: 0R3E) is a global security and aerospace company that research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Headquartered in Bethesda, Maryland, Lockheed Martin Corporation employs approximately 116,000 people worldwide.
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19 = Recent Developments =
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21 **U.S. Army Awards Javelin Production Contract**{{footnote}}https://news.lockheedmartin.com/2023-05-04-us-army-awards-javelin-production-contract{{/footnote}}
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23 May 04, 2023; The U.S. Army awarded the Javelin Joint Venture (JJV) an indefinite-delivery, indefinite-quantity (IDIQ) production contract with a total ceiling of $7.2 billion for fiscal years 2023 to 2026 for the Javelin weapon system and associated equipment and services. This award includes a base year with authorized funding to $1.02 billion and production ramp support to increase Javelin All Up Round (AUR) production to 3,960 per year by late 2026.
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26 The production contract provides procurement of Javelin systems and support for the U.S. Army and international customers. The contract will also provide tooling, test equipment and non-recurring effort (NRE) for the Javelin production ramp that will support increasing Javelin production capacity both at JJV factories and throughout the supply chain.
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29 **US Army Awards $4.79 Billion Production Contract for All-Weather GMLRS Rocket**{{footnote}}https://news.lockheedmartin.com/2023-04-27-us-army-awards-production-contract-for-all-weather-gmlrs-rocket{{/footnote}}
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31 April 27, 2023; The U.S. Army has awarded Lockheed Martin a Not-to-Exceed $4.79 billion contract to manufacture two full-rate production lots of GMLRS rockets and associated equipment.
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34 The contract calls for the production of GMLRS Unitary and Alternative Warhead (AW) rockets and integrated logistics support for the U.S. Army and international partners.
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37 GMLRS is an all-weather rocket designed for fast deployment that delivers precision strike beyond the reach of most conventional weapons. The munition is the primary round for the Lockheed Martin produced HIMARS and MLRS family of launchers and features a Global Positioning System (GPS) aided inertial guidance package and small maneuvering canards on the rocket nose,which add maneuverability to enhance the accuracy of the system.
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41 [[image:LMT1.jpg]]
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44 = Financial Highlights =
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46 == First Quarter 2023 Results ==
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48 April 18, 2023; Lockheed Martin Corporation reported first quarter 2023 net sales of $15.1 billion, compared to $15.0 billion in the first quarter of 2022. Net earnings in the first quarter of 2023 were $1.7 billion, or $6.61 per share, compared to $1.7 billion, or $6.44 per share, in the first quarter of 2022. Cash from operations was $1.6 billion in the first quarter of 2023, compared to $1.4 billion in the first quarter of 2022. Free cash flow was $1.3 billion in the first quarter of 2023, compared to $1.1 billion in the first quarter of 2022.Cash from operations in the first quarter of 2023 was $1.6 billion and capital expenditures were $294 million, resulting in free cash flow of $1.3 billion. {{footnote}}https://news.lockheedmartin.com/2023-04-18-Lockheed-Martin-Reports-First-Quarter-2023-Financial-Results{{/footnote}}
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51 == Full Year 2022 Results ==
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53 Net sales in 2022 were $66.0 billion, compared to $67.0 billion in 2021. Net earnings in 2022 were $5.7 billion, or $21.66 per share, compared to $6.3 billion, or $22.76 per share, in 2021. Net earnings for 2022 include certain non-operational items of $1.9 billion, or $5.57 per share, compared to $1.4 billion, or $3.99 per share in 2021. See table below for further details. Cash from operations in 2022 was $7.8 billion, compared to $9.2 billion in 2021. Free cash flow in 2022 was $6.1 billion, compared to $7.7 billion in 2021. Cash from operations in 2022 was $7.8 billion. Capital expenditures were $1.7 billion, resulting in free cash flow of $6.1 billion in 2022.
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56 **Aeronautics**
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58 Aeronautics' net sales in 2022 increased $239 million, or 1%, compared to 2021. Net sales increased by approximately $375 million on classified contracts primarily due to higher volume; about $80 million for the F-22 program due to higher net favorable profit adjustments; and approximately $55 million for the F-16 program due to higher volume on production contracts that was partially offset by lower volume on sustainment contracts and unfavorable profit adjustments on a production contract and modernization contracts. These increases were partially offset by a decrease of about $310 million for the F-35 program due to lower volume and favorable profit adjustments on sustainment and production contracts that were partially offset by higher volume on development contracts.
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61 Aeronautics' operating profit in 2022 increased $67 million, or 2%, compared to 2021. Operating profit increased approximately $145 million on classified contracts primarily due to lower unfavorable profit adjustments on a classified program ($45 million in 2022 compared to $225 million in 2021) that were partially offset by lower favorable profit adjustments; and about $100 million for the F-22 program due to higher net favorable profit adjustments. These increases were partially offset by lower operating profit of approximately $110 million for the F-16 program due to unfavorable profit adjustments in 2022 on a production contract and modernization contracts; and about $80 million for the F-35 program due to lower net favorable profit adjustments on production and sustainment contracts and volume on sustainment contracts. Net favorable profit booking rate adjustments were $30 million higher in 2022 compared to 2021.
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64 **Missiles and Fire Control**
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66 MFC's net sales in 2022 decreased $376 million, or 3%, compared to 2021. The decrease was primarily attributable to lower net sales of approximately $280 million for sensors and global sustainment programs due to lower volume on SOF GLSS as a result of changes in mission requirements and lower volume on Sniper Advanced Targeting Pod (SNIPER®); and about $60 million for integrated air and missile defense programs due to lower volume (THAAD) and lower net favorable profit adjustments (PAC-3) that were partially offset by higher volume (PAC-3). Net sales for tactical and strike missile programs were comparable as higher volume (PrSM) was offset by lower volume (air dominance weapon systems).
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69 MFC's operating profit in 2022 decreased $13 million, or 1%, compared to 2021. The decrease was primarily attributable to lower operating profit of approximately $85 million for integrated air and missile defense programs due to lower net favorable profit adjustments for the PAC-3 program and an unfavorable profit adjustment of about $40 million on an air and missile defense development program.
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72 **Rotary and Mission Systems**
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74 RMS' net sales in 2022 decreased $641 million, or 4%, compared to 2021. The decrease was primarily attributable to lower net sales of approximately $280 million for TLS programs primarily due to the delivery of an international pilot training system in the first quarter of 2021 that did not recur in 2022; about $205 million for various C6ISR programs due to lower volume; and approximately $170 million for Sikorsky helicopter programs due to lower production volume (Black Hawk) that was partially offset by higher production volume (CH-53K).
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77 RMS' operating profit in 2022 decreased $125 million, or 7%, compared to 2021. The decrease was primarily attributable to approximately $70 million for Sikorsky helicopter programs due to lower production volume and net favorable profit adjustments (Black Hawk) that were partially offset by higher net favorable profit adjustments (CRH); about $50 million for various C6ISR programs due to lower net favorable profit adjustments; and approximately $15 million for IWSS programs due to lower net favorable profit adjustments (TPQ-53 and Aegis) that were partially offset by $30 million of unfavorable profit adjustments on a ground-based radar program in 2021 that did not recur in 2022.
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80 **Space**
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82 Space's net sales in 2022 decreased $282 million, or 2%, compared to 2021. The decrease was primarily attributable to lower net sales of approximately $885 million due to the renationalization of the AWE program on June 30, 2021, which was no longer included in the company's financial results beginning in the third quarter of 2021; and about $125 million for commercial civil space programs due to lower volume (Orion). These decreases were partially offset by higher net sales of about $495 million for strategic and missile defense programs due to higher development volume (NGI); and about $245 million for national security space programs due to higher development volume (classified programs).
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85 Space's operating profit in 2022 decreased $89 million, or 8%, compared to 2021. The decrease was primarily attributable to approximately $85 million for national security space programs primarily due to lower net favorable profit adjustments (classified programs and SBIRS) that were partially offset by lower net unfavorable profit adjustments of $25 million on a ground solutions program; and about $40 million for commercial civil space programs due to lower net favorable profit adjustments (Human Lander System (HLS)) and lower volume (Orion).
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89 [[image:LMT2.jpg]]
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92 = Company Overview =
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94 Lockheed Martin Corporation is a global security and aerospace company principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The company also provide a broad range of management, engineering, technical, scientific, logistics, system integration and cybersecurity services. The company's main areas of focus are in defense, space, intelligence, homeland security and information technology, including cybersecurity. The company serve both U.S. and international customers with products and services that have defense, civil and commercial applications, with its principal customers being agencies of the U.S. Government. In 2022, 73% of its $66.0 billion in net sales were from the U.S. Government,{{footnote}}https://fintel.io/doc/sec-lockheed-martin-corp-936468-10k-2023-january-26-19383-1360{{/footnote}}
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97 == Business Segments ==
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99 The company operate in four business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space.
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102 === Aeronautics ===
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104 Aeronautics is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Aeronautics also has contracts with the U.S. Government for various classified programs. Aeronautics’ major programs include:
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106 * F-35 Lightning II - international multi-role, multi-variant, fifth generation stealth fighter.
107 * C-130 Hercules - international tactical airlifter.
108 * F-16 Fighting Falcon - combat-proven, international multi-role fighter.
109 * F-22 Raptor - air dominance and multi-role fifth generation stealth fighter.
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112 === Missiles and Fire Control ===
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114 MFC provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support and integration services; manned and unmanned ground vehicles; and energy management solutions.
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117 === Rotary and Mission   Systems ===
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119 RMS designs, manufactures, services and supports various military and commercial helicopters, surface ships, sea and land-based missile defense systems, radar systems, sea and air-based mission and combat systems, command and control mission solutions, cyber solutions, and simulation and training solutions. RMS also has contracts with the U.S. Government for various classified programs
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122 === Space ===
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124 Space is engaged in the research and design, development, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems. Space provides network-enabled situational awareness and integrates complex space and ground global systems to help its customers gather, analyze and securely distribute critical intelligence data. Space is also responsible for various classified systems and services in support of vital national security systems.
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127 == Conflict in Ukraine ==
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129 Russia’s invasion of Ukraine has significantly elevated global geopolitical tensions and security concerns. As a result, Lockheed Martin has received increased interest for some of its products and services as countries seek to improve their security posture, particularly in Europe. In addition, security assistance provided by the U.S. government to Ukraine has created U.S. government demand to replenish U.S. stockpiles, resulting in additional and potential future orders for its products. Lockheed Martin is beginning to see this interest result in initiation of new contract discussions, however, given the long-cycle nature of its business and current industry capacity, the company do not expect a significant increase in near term sales from new contracts in response to the conflict.
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132 == U.S. Government Funding ==
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134 On March 28, 2022 the Administration submitted to Congress the President’s Fiscal Year (FY) 2023 budget request, which proposed $813.4 billion in total national defense spending, of which $773 billion was for the base budget of the Department of Defense (DoD).
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137 On December 29, 2022, the President signed the FY 2023 Omnibus Appropriations Act into law, which provides $858 billion in total national defense funding, of which $816.7 billion is for the DoD base budget. This reflects a $44.6 billion increase over the FY 2023 request for national defense spending, and a $43.7 billion increase for the DoD.
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140 The FY 2023 Omnibus Appropriations Act also provided separate and additional funding of $47 billion for Ukraine, the fourth supplemental since March of 2022, bringing the total amount of supplemental funding authority provided to $113 billion.
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144 [[image:LMT3.jpg]]
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147 == Locations ==
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149 The company owned or leased building space at 339 locations primarily in the U.S. At December 31, 2022, the company had significant operations in the following locations.
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152 (% style="width:1198px" %)
153 |Aeronautics|(% style="width:970px" %)Palmdale, California; Marietta, Georgia; Greenville, South Carolina; and Fort Worth, Texas.
154 |Missiles and Fire Control|(% style="width:970px" %)Camden, Arkansas; Ocala and Orlando, Florida; Lexington, Kentucky; and Grand Prairie,Texas.
155 |Rotary and Mission Systems|(% style="width:970px" %)Stratford, Connecticut; Orlando, Florida; Moorestown/Mt. Laurel, New Jersey; Owego and Syracuse, New York; Manassas, Virginia; and Mielec, Poland.
156 |Space|(% style="width:970px" %)Huntsville, Alabama; Sunnyvale, California; Denver, Colorado; Cape Canaveral, Florida; and Valley Forge,Pennsylvania.
157 |Corporate activities|(% style="width:970px" %)Bethesda, Maryland.
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160 = References =
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162 {{putFootnotes/}}
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